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STB Vendors Attracted to Latin America and Europe

The recent volatility in the global pay-TV industry is starting to impact vendor product shipments. In 2Q10, worldwide total set top box (STB) revenue declined by 6 percent from the previous quarter while shipments declined even more.

One bright spot, shipments for HD-capable STBs and DVR-enabled STBs were up slightly over 1Q10, contributing to a slightly higher selling price.

For the remainder of 2010, only Latin America and Europe are forecast to show any gains in revenue or unit shipments, according to the latest market study by In-Stat.

The global market for STBs is highly fragmented with many vendors offering legacy pay-TV products. Moreover, as the market evolves to include more Hybrid STB and purpose-built low-cost online video players, the fragmentation will likely increase.

In-Stat's market study uncovered the following:

- Cisco, Motorola, and Pace were the market leaders in cable STB shipments.

- Echostar, Humax, Pace, and Technicolor were market leaders in satellite STB shipments.

- Cisco, Motorola, Netgem, and Samsung were market leaders in IPTV shipments.

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